End-of-day (EOD) is a process that transitions intraday processes to official processes after the publication of official prices at the close of business hours. It involves calculating simulation results like PnL, MtM, and inventory. EOD processes ensure system readiness for the next trading day and provides crucial financial information for traders, managers, and risk analysts to assess profitability, make informed trading decisions, evaluate traders, and report portfolio risk to stakeholders. The top stakeholders of the End-of-Day (EOD) process include the front office and middle office, but they can also provide valuable insights to the back office accounting and compliance teams.
Significant challenges in the End-of-Day (EOD) process is the persistent issue of delayed valuations. Here are some common challenges in the EOD process and their impacts on the business:
Affect Financial Assessment Timeliness
Hinder decision-making for risk managers
By running EOD specifically for trades with available prices, delays can be minimized, ensuring that not everything is delayed.
This allows for a more focused and efficient execution of EOD, considering the specific requirements and characteristics of different commodities and regions.
Updating and modernizing the EOD system infrastructure to leverage advanced technologies and capabilities that enhance performance, reliability, and scalability.
Running simulation jobs simultaneously and in parallel, utilizing a grid system and distributing job processing across different engines. This approach ensures efficient utilization of resources, minimizes bottlenecks, and enables effective monitoring of job progress.
By embracing the following approaches and metrics, organizations can effectively transition to an Event Driven End-of-Day (EoD) model:
This shift brings several benefits, including enhanced efficiency, agility, and overall maturity of the EoD processes. The event-driven EoD model allows organizations to proactively respond to market events, data availability, and trading activities, resulting in faster and more accurate EoD processes.
In our experience the following approaches have been instrumental in driving accelerated progress towards event driven EOD processes and achieve desired business outcomes in a timely manner.
Our approach is to assess the effectiveness and suitability of the solution design criteria within the firm's book structure, and helps in evaluating various factors
Our approach focuses on performing functional analysis of processes based on commodity and market domains, and has the following characteristics
Value Creed offers a comprehensive suite of services to address the unique needs of businesses in the EOD domain. Our expertise allows us to excel in reengineering EOD processes, optimizing them for enhanced efficiency and performance that fits for your business needs. Partner today and benefit from Value Creed’s deep industry knowledge, innovative solutions, and risk management capabilities with Endur, empowering your business to overcome EOD challenges through automation and drive sustainable growth.
Explore our suite of solutions designed to empower your trading and risk management functions. Partner with us for a transformative CTRM experience that drives success in today’s ever-evolving markets.
Get In Touch
By calling or texting this number +1-833-282-7333, Customers agree to receive text messages. If you no longer wish to receive text messages,
you may opt out at any time by replying “STOP.”
Get In Touch
By calling or texting this number (833) 282-7333, Customers agree to receive text messages. If you no longer wish to receive text messages,
you may opt out at any time by replying “STOP.”